The legal suit brought against the Company by the Kelantan State Government in 2010 in respect of payment of
petroleum proceeds under the terms of the agreement dated 9 May 1975 entered into between the Kelantan State
Government and PETRONAS is still on-going as at the reporting date. PETRONAS has been advised by its solicitors that
PETRONAS has a meritorious defence to the claim.
In 2012, certain individuals (“plaintiffs”) filed a legal suit against PETRONAS and the State Government of Sabah
wherein the plaintiffs are seeking a declaration that the agreement dated 14 June 1976 entered into between the
State Government of Sabah and PETRONAS is ultra vires and null and void; and a declaration that the Petroleum
Development Act of 1974 is also ultra vires and null and void. On 15 January 2014, the High Court of Sabah and Sarawak
at Kota Kinabalu struck out the plaintiffs’ suit with costs. The plaintiffs have not filed an appeal to the Court of Appeal,
thus bringing the suit to an end.